Annual Report - Bega Cheese

Financial Statements
Period Financial Ended Statements 30 June 2010
Notes Period to Ended the Financial 30 June Statements
2010
Notes to the Financial Statements
24. Commitments (cont.)
Consolidated
Company
2010 2009 2010 2009
$'000 $'000 $'000 $'000
c. Finance leases
Commitments for minimum lease payments in relation to noncancellable
operating leases are payable as follows:
Within one year 988 988 80 80
Between one and five years 781 1,749 100 160
Minimum lease payments 1,769 2,737 180 240
Future finance charges (111) (262) - -
Total lease liabilities 1,658 2,475 180 240
Representing lease liabilities
Current (Note 14) 1,285 836 80 80
Non-current (Note 17) 759 1,639 100 160
Total lease liabilities 2,044 2,475 180 240
The Group leases production plant and equipment under finance leases expiring from one to five years. At the end of the
lease term, the Group has the option to purchase the equipment at lower than market value. The Group's lease liabilities are
secured by the leased assets of $1,213,000 (2009: $2,147,000) as in the event of default, the leased assets revert to the
lessor.
25. Business Combination
a. Summary of acquisitions
Coburg facility
On 31 October 2008, Bega Cheese acquired the Coburg facility, a cheese making plant located in Coburg, Victoria.
The acquired business contributed revenues of $5,121,000 and a loss of $(2,080,000) to the Group for the period from
31 October 2008 to 30 June 2009. If the acquisition had occurred on 1 July 2008, consolidated revenue and profit for the
year ended 30 June 2009 would have been $820,964,000 and $8,290,000 respectively.
Strathmerton facility
On 13 March 2009, Bega Cheese acquired the Strathmerton facility, a cheese processing and packaging plant located in
Strathmerton Victoria.
The acquired business contributed revenues of $39,858,000 and a loss of $(1,181,000) to the Group for the period from
13 March 2009 to 30 June 2009. If the acquisition had occurred on 1 July 2008, consolidated revenue and profit for the year
ended 30 June 2009 would have been $891,550,000 and $6,556,000 respectively.
Basis of assumption of profit and revenue figures
These amounts have been calculated using the Group's accounting policies by adjusting the results of the subsidiary to
reflect the additional depreciation and amortisation that would have been charged assuming the fair value adjustments to
property, plant and equipment and intangible assets had applied from 1 July, 2008, together with the consequent tax effects.
Bega Cheese Limited 2010 Annual Report 44
Bega Cheese Limited 2010 Annual Report 44